With no takers for luxury apartments, builders in Mumbai are resorting to constructing small 1-BHK (bedroom hall kitchen) flats to boost sales.
In the last few months, a large number of builders, who would deal mainly in luxury housing till a few years ago, have launched projects in the range of Rs. 60 lakh to Rs. 1.5 crore across Mumbai.
Veena Developers has opened up booking for 200 apartments in Chembur, as part of its project Veena Serenity. “There are a lot of nuclear families looking for smaller apartments and this product is selling very well,” said Nikunj Sanghavi, director, Veena Developers. The apartments are priced in the range of Rs. 1 crore-Rs. 1.5 crore and buyers have to pay Rs. 9 lakh as the booking amount.
Similarly, Shraddha Lifescapes has come up with 48 1-BHK apartments in its IC Colony project at Borivli. “These flats sell faster compared to luxury apartments, thus providing us much-needed funds,” said Bhavesh Sanghrajka, chairman and managing director, Shraddha Lifescapes. The size of these apartments ranges from 400-550 square feet.
Luxury apartments lie largely unsold because the new consumer in the city – single, working professionals or those upgrading from one-room apartments – is looking for small, affordable houses, said builders.
Joy Builders has unveiled Joy Callista at Andheri (East), which are 1-BHK executive suites providing five-star facilities in the building. The Ravi group is constructing its project Era at Kandivli (West) while Heeral Homes, which launched its project in the same area, has sold off all its 48 small apartments.
The launch of Hiranandani Builders Zen Adalia project, where the apartments were priced from Rs. 1.30 crore, got a good response. The Tejukaya Group is also planning 1-BHK apartments for its Lalbaug project.
However, their small size does not mean the apartments are cheap, said experts. “Flats selling above Rs. 60 lakh cannot be termed affordable. But consumers are tired of waiting for prices to fall, and hence are going ahead with bookings,” said Pankaj Kapoor, CEO, Liases Foras, a real-estate research firm.